Category: NFTs

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NFTs Scams

Crypto Twitter Outraged by Tai Lopez’s NFT Collection, Described as ‘Ridiculous Cash Grab’

Entrepreneur, investor and internet personality Tai Lopez has come under fire this week over his latest NFT collection, which is accompanied by questionably expensive opportunities to meet Lopez. Twitter has uncovered some damning information about the project and has labelled it a “ridiculous cash grab”:

Crypto Influencers Arc Up Over Tai Lopez’s NFTs

Tai Lopez’s ‘OG (Original Garage) Social Club’ NFT collection is “personality-based”, meaning some of the options available to investors include opportunities such as watching a movie with Lopez or shadowing him in his office – for a fee. However, the extreme prices of the actual NFTs are drawing the most extreme reactions from a lot of crypto influencers.

Prominent crypto user @Ox_Beans accused Lopez of immediately siphoning funds to his team’s wallet once an investor mints:

Lopez’s reputation is also being called into question, with many suggesting he may have a inflated sense of his own importance. @EddyisKongz was one of the first to question the sky-high pricing of the OG NFTs and Lopez’s associated inducements:

OG Social Club has also been running several “giveaways”, yet concerns have been raised about their legitimacy with some of the “winners” failing to get a response from Lopez’s secretary. If you’d like to know more about the OG project, check out the video below:

NFT Scams and Rug Pulls

Unfortunately, the NFT industry is rife with dodgy behaviour and the community remains the primary defence. This was seen in mid-February when YouTuber “Coffeezilla” explained how he and a group of crypto users had prevented an alleged scam involving US$20 million.

Earlier this month, NFT project “Pixelmon” disappointed investors who had pooled US$70 million when the release failed to live up to pitch quality. The result was crashing floor prices, which led investors to label the project as “pretty much a rug pull”.

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Crypto Art Crypto News NFTs

A Look at Hollywood’s Hottest NFT Movie Projects

Could non-fungible tokens (NFTs) be the saviour of a Hollywood movie industry that appears increasingly bankrupt of original ideas? From endless Marvel remakes to the umpteenth reiteration of the Batman franchise, Tinseltown is way down on originality and NFTs may be the solution.

There have already been movies funded by NFTs and more than one documentary film in the works examining the NFT craze – worth a staggering US$25 billion in trading volume generated in 2021 alone – but movies based on NFT collections could well be the industry’s next hot ticket.

What follows are just a few of the major NFT projects announced to receive the film treatment, as well as those that have signed representation to explore potential movie deals and more:

Aku

Aku dreams of becoming an astronaut. Source: hypebeast.com

Artist and former professional athlete Micah Johnson’s Aku – an African American boy who dreams of being an astronaut – was the first original NFT character optioned in April 2021, just two months after the first Aku NFT dropped. Anonymous Content and Permanent Content, the latter company formed by musician Shawn Mendes and manager Andrew Gertler, will exercise the option.

Aku’s star has grown significantly across subsequent NFT drops, also spurred by the Aku World experiential show held at Art Basel Miami last December. According to Johnson, a former Major League Baseball player, NFT holders may be able to influence the direction of the IP as it expands into the world of film and beyond.

Huxley

Last week, longtime Marvel film producer Ari (Iron Man) Arad and his eponymous studio announced plans to co-produce a cinematic adaptation of Huxley, an NFT comic book project by artist Ben Mauro (Elysium, The Hobbit). Arad will develop Huxley alongside Web3 production studio Feature and Oscar-nominated VFX supervisor Jerome Chen. Mauro’s sci-fi credentials are evident in the trailer below:

World of Women

Last month, actor/producer Reese Witherspoon announced plans to create movies and TV series based on Yam Karkai’s World of Women (WoW) NFT project through her Hello Sunshine production house. In January, World of Women signed with music industry identity Guy Oseary to represent it in such media and product deals. Witherspoon vows that WoW NFT holders will have a say in the creation of projects based on the profile picture collection.

World of Women. Source: theindependent.com

On the ‘Maybe’ List

In October 2021, Yuga Labs announced it had signed with Oseary to explore media opportunities across various potential formats, including film, television, music, and video games.

The deal followed news last August that Larva Labs, creators of the influential CryptoPunks NFTs, had signed with United Talent Agency (UTA) for similar aims. Creative Artists Agency (CAA) has also signed pseudonymous NFT collector 0xb1 – who owns Bored Ape NFTs, among others – to licensing and partnership deals.

In the same month last year, Roman Coppola – scion of the famous Italian-American Hollywood family – co-founded a decentralised film financing platform based on blockchain technology, in partnership with his equally illustrious sisters, Gia and Sofia.

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Crypto News Ethereum MetaMask NFTs OpenSea

OpenSea and MetaMask Block Users from ‘Some’ Countries

MetaMask wallet and OpenSea users from Iran and Venezuela have been blocked in Ethereum transactions after the platforms cited compliance issues. It was later confirmed that Ethereum’s Infura cut off users to separatist areas in Ukraine, accidentally blocking Venezuelan users as well.

Users in Iran and Venezuela began reporting problems this week with accessing their digital wallets, with hordes of users saying none of their transactions sent through MetaMask was realised.

The first instances of bans were noticed on the NFT platform OpenSea, which reportedly locked and deactivated several Iranian users. Users from Venezuela began reporting problems with accessing their own wallets soon after, with thousands of messages popping up on social media.

The issue was briefly addressed by MetaMask on its support page, saying that MetaMask and Infura would be unavailable in certain jurisdictions due to legal compliance issues. When attempting to use MetaMask in one of those regions, users received a message stating that MetaMask was unable to connect to the blockchain host.

While users were able to see their MetaMask balances and transaction histories, any attempt to interact with the Ethereum network was blocked, meaning that the ban stemmed from Infura, the Ethereum API infrastructure developed by ConsenSys.

Iran Users Blocked from OpenSea

MetaMask and Infura are not alone. Reports are also circulating on social media of users from Iran being blocked on OpenSea:

NFT artist Parin Heidari also reported that her NFT collection on OpenSea was showing 404s in response to the previous tweet.

These episodes follow a recent call from Ukraine’s Vice Prime Minister for crypto exchanges to block Russian users.

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Blockchain Crypto Art Cryptocurrencies Events NFTs

Emergence Conference in Sydney to Explore Blockchain and Crypto Opportunities

Sydney is set to host a three-day conference exploring potential opportunities for blockchain and crypto technology. The Emergence22 conference (March 9-11) at the Fullerton Hotel in the city’s Martin Place will feature more than 40 guest speakers, with free virtual passes on offer for those who wish to attend digitally.

https://www.emergence22.com/
Emergence22 conference banner ad. Source: Emergence22

From Fintech to Web3 and NFT Art

Day one of Emergence Sydney is dedicated to discussion on renewable energy and the power grid, following a keynote address. Attendees can expect day two to touch on fintech and health care, and day three totally devoted to crypto with sessions on Web3 and NFTs and a lengthy list of industry guest speakers. The conference will also feature what Binance Australia is calling “the first NFT art gallery”.

There are free virtual passes to attend online, with live attendance tickets priced at A$101. For a more in-depth rundown of what’s available across the three-day event, access Emergence Sydney’s itinerary online. If you are looking to attend in person, limited tickets are still available.

More Notable Crypto Dates for 2022

March is action-packed in crypto terms, with several partnerships, announcements, rebrands and conferences greenlit. Most of this month’s live events are online, though we’ve compiled a full list of dates to make it easy for you to keep up.

The Gold Coast is set to host Australia’s largest crypto convention in September. This not-to-be-missed weekend will feature guest speakers, workshops, networkers, and more. Crypto News Australia has two weekend conference passes to give away. Visit our Twitter page for info on how to enter the draw:

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Crypto News Hackers NFTs

‘Smol Brains’ NFTs Worth $1.4 Million Stolen and Then Returned?

TreasureDAO, an NFT trading market built on Arbitrum, has confirmed an exploit in which hackers purchased NFTs listed on the market at zero fees.

Soon after, TreasureDAO advised users to “delist everything” through messages posted on its Discord server, then later informed the community it had identified the issue.

Smol Brains are the most popular NFTs traded on Arbitrum, and 17 were stolen. Based on their listed prices on the TreasureDAO platform, their dollar value was around US$1.4 million.

Many More NFTs Stolen in the Same Exploit, Though Some Were Returned

However, according to analysis by blockchain security and data firm PeckShield, more than 100 NFTs from several collections were stolen from the marketplace.

In a surprise twist, the hackers started to return stolen Smol Brains and other NFTs just hours after the exploit:

The incident echoed the recent experience of NFT marketplace Mintable, which was able to recover three NFTs stolen in a phishing attack on the OpenSea platform last month.

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Crypto News NFTs Russia

Ukraine Flag NFT Raises $6.75 Million to Fund War Efforts

An NFT of the Ukrainian flag has sold for 2,258 ether – about US$6.75 million – with the proceeds directed to ‘Come Back Alive’, an organisation that donates supplies to Ukrainian civilians and members of the military.

DAOs to the Rescue

The sale of the NFT was organised by UkraineDAO – a crowdfunding effort led by radical Russian art collective Pussy Riot and NFT token studio Trippy Labs to support Ukraine’s efforts against the Russian invasion. The bid that won the sale for the 1-of-1 flag was placed on behalf of a group of 3,271 donors via a service called Party Bid:

This is where the DAO (decentralised autonomous organisation) was able to purchase the NFT from itself through donations from its members. On February 27, Pussy Riot had already organised the DAO to raise money for Ukrainian soldiers facing down the Russian Army:

The project is taking cues from other politically minded fundraiser DAOs such as AssangeDAO and ConstitutionDAO. UkraineDAO joins the government itself in asking for crypto donations to aid the resistance against Russia.

Ukraine Turns to Crypto for Aid

Cryptocurrencies have been proving to be Ukraine’s financial saviour amid the turmoil the country is currently experiencing. The Ukrainian government recently succeeded in raising US$37 million in crypto after appealing to the public for assistance. The Ukrainian vice prime minister has also called on crypto exchanges to block Russian and Belarusian users from accessing their crypto accounts.

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Crypto News NFTs Regulation

US Regulator Scrutinises NFTs as Potential Unregistered Securities

The US Securities and Exchange Commission (SEC) has commenced investigation into the question of whether non-fungible tokens (NFTs) constitute securities. Those with their finger on the regulatory pulse are not in the least bit surprised:

What is the likely outcome? Let’s start by defining “securities”.

Securities Defined

Securities are financial instruments that can be traded between parties in open markets, such as stock exchanges. Of the four main types, equities, or shares, are the most widely understood.

From a US legal perspective, there is a four-prong test to determine whether an offering constitutes an investment contract rendering it a security, and thus requiring registration with the SEC. The transaction must satisfy all four elements, known as the “Howey test”:

  1. It involves an investment of money;
  2. It has a common enterprise;
  3. It was made with a reasonable expectation of profits; and
  4. It is derived from the entrepreneurial or managerial efforts of others.

Are NFTs Securities?

Reports suggest that SEC attorneys have sent subpoenas to NFT creators and various exchanges requesting more information. In particular, they are apparently focused on fractional NFTs – those where the NFT is broken down into many parts and sold separately.

SEC Commissioner Hester Peirce forewarned that this was coming in December:

Given the breadth of the NFT landscape, certain pieces of it might fall within our jurisdiction … people need to be thinking about potential places where NFTs might run into the securities regulatory regime.

Hester Peirce, SEC Commissioner


SEC chief Gary Gensler has also previously said he believes many tokens are probably securities within the purview of the SEC since they pass the Howey Test.

While it is unclear whether the investigation is limited to fractional NFTs or the broader sector, some evidently understand that a strict interpretation of the Howey test may render them securities:

The SEC has had its hands full of late, from perpetually denying crypto exchange-traded funds (ETFs) to tackling initial coin offering (ICO) frauds.

At this point, it’s not clear what the end result of this NFT investigation will be. However, on a plain language understanding of the Howey test:

  1. Do NFTs involve an investment of money? Tick – fiat currency or ETH.
  2. Are NFTs a common enterprise? Tick – the project or club.
  3. Are NFT offerings made with a reasonable expectation of profits? Tick – of course.
  4. Are NFTs derived from the entrepreneurial or managerial efforts of others? Tick – the creators, developers, marketeers and entire team.

As with all things, the devil is in the detail. In addition, when it comes to enforcement action, politics are as relevant a factor as the law itself – just ask Wall Street.

Categories
Crypto News Gaming NFTs Solana

Aussie NFT Project ‘SolChicks’ Has Raised $77 Million in 6 Months

Since September 2021, Australian play-to-earn blockchain gaming company SolChicks has raised A$77 million from venture capital and institutional investment funds, as well as hiring more than 100 staff.

Powered by the high-speed Solana blockchain, SolChicks is scheduled for an “alpha” mini-game release next month and an official release exactly a year after its founding.

SolChicks Joins Seoul Stars and Angrymals in the Catheon Gaming Stable

A pair of Australian finance graduates, chief executive William Wu – based in Shanghai – and CEO Lewis Grafton of Sydney have in six months grown SolChicks into a game studio with two other titles. The duo’s Catheon Gaming team (and parent company) is based in Australia, Hong Kong and Singapore.

Catheon’s other games are the Korean-themed Seoul Stars, a “sing-to-earn” game endorsed by K-pop stars, and Angrymals, a player-versus-player fortress defence strategy mobile game inspired by Angry Birds and Worms. But SolChicks is the flagship, said to be similar to traditional RPG titles such as Darkest Dungeon or Diablo, except that the players are “cute chicken characters” that can be bought and sold as NFTs on Solana.

How the Game Works

NFT characters are stored in a digital wallet (the developers recommend Phantom or SolFlare). There are only 10,000 unique origin SolChicks, but players who own two will be allowed to breed them to produce SolEggs. Breeding SolChicks creates unique NFTs that can be sold in the marketplace for profit.

The original SolChicks fall into one of five categories based on the rarity of their attributes. Players can progress their SolChicks through 60 levels, from Tutorial, through Fledgling and Progression, and finally Endgame.

SolChicks are highly customisable based on their primary and secondary stats, which can be improved through buying and adding NFT attributes. Players are urged to “bond” with their SolChick – they need to regularly “feed” it and participate in PvP (player versus player) battles with it to gain experience.

What Players Can Earn

Players are ranked on a weekly basis according to their level and achievements, and rewarded with CHICKS tokens. Users can earn the in-game currency SolCoins, and may also sell and trade their in-game assets and rewards as NFTs.

SolChicks has over 350,000 followers on Twitter and says its community consists of 700,000 across 20 countries. The demo version of the game is currently available to all aspiring players through the SolChicks website.

Crypto News Australia reported on five new NFT projects that launched on the Solana blockchain in December 2021. Add SolChicks to that list.

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Crypto News NFTs

In Largest Ever NFT-Backed Loan, 101 CryptoPunks Put Up as Collateral

MetaStreet, a liquidity routing and scaling solution for the NFT collateralisation platform, has announced it has secured US$3 million in seed financing and an additional US$11 million in initial protocol liquidity to jumpstart the expansion of the quickly developed collateralised NFT lending market.

In what has been billed the largest-ever NFT-backed loan, an anonymous borrower took out a US$8 million loan collateralised by their collection of 101 CryptoPunks. The loan, with an APR (annual percentage rate) of 10 percent and a 30-day duration, was facilitated by liquidity scaling solution MetaStreet on peer-to-peer lending platform NFTfi:

Nexo, Three Arrows Set Precedent

This is not the first time NFTs have been used as collateral. In December, world-leading crypto lending specialist Nexo teamed up with Singaporean hedge fund Three Arrows Capital to launch its new NFT-backed lending service. It meant that clients were from that point able to borrow digital assets and use NFTs as collateral.

This round of financing is seen by participants in the crypto world as a bellwether for lending secured by digital collectibles, as the market continues to boom at an astronomical pace. Conor Moore, co-founder and CEO of MetaStreet, has said the loan is “orders [of] magnitude larger” than any previous NFT financing. Moore did not disclose the identity of the borrower but referred to “him” as a whale – a person who holds vast amounts of crypto.

MetaStreet has only eight full-time employees but has secured US$3 million in seed financing and an additional US$11 million in initial protocols liquidity so far this year. The firm provides a layer of financial infrastructure to NFTs, specifically lending protocols such as NFTfi and Arcade.

David Choi, Moore’s fellow co-founder and CEO of MetaStreet, has said NFT collectors want to free up capital more efficiently and don’t want their crypto assets to accumulate virtual dust:

By having an active borrowing and lending market [in NFTs], you create productive assets that are otherwise viewed as unproductive.

David Choi, co-founder and CEO, MetaStreet
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Crypto News NFTs

FriesDAO Raises $5.4 Million to Buy Fast Food Restaurant

In the latest flurry of ambitious projects, a decentralised autonomous organisation called FriesDAO has raised an impressive US$5.4 million with plans to buy fast-food restaurants.

The first target on FriesDAO’s radar is a Subway franchise. According to the DAO, its token holders will be able to vote on how the franchise operates but will not receive a profit share:

It’s The Year of the DAO

News of this DAO comes only a week after “BuytheBroncos” flagged its intention to acquire National Football League (NFL) team the Denver Broncos. In other DAO-related news, the Marshall Islands has now officially recognised DAOs and aims to become a global DAO hub.

You Want FRIES Tokens With That?

After raising US$5.4 million over the week ended February 20, FriesDAO has distributed FRIES tokens to its participants. The token will not confer any ownership rights of the restaurants, or give holders any share of the profits, but they can be used to vote on proposals regarding how they operate:

Ketchup With Those FRIES?

From next week, token holders can start staking their FRIES to receive KCHUP tokens, which can then be used to buy NFTs that will provide them with incentives such as free burgers:

The DAO has said that the plan is to buy at least one fast-food restaurant in the first year. Should this not be realised, the funds raised will be returned to the community, minus any expenses.

According to FriesDAO’s Discord server, the first restaurant it is trying to acquire is a branch of sandwich chain Subway. It has asked its token holders to review the financial details ahead of a potential vote on the purchase.